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With a lobby of FPIs trying hard to get the proposed changes to KYC norms withdrawn, market regulator Sebi Tuesday said it is "preposterous and highly irresponsible" to claim that $75 billion will move out of India because of the regulatory move.

Some foreign portfolio investors (FPIs) are believed to have earlier expressed concerns over the proposed changes in rules, for which Sebi has already granted more time.

However, a lobby group named AMRI (Asset Management Roundtable of India) said on Monday that the immediate impact of the new norms, if not amended, would be that $75 billion investment managed by overseas citizens of India (OCIs), persons of Indian origin (PIOs) and non-resident Indians (NRIs) will be disqualified from investing into India, and the funds will have to be withdrawn and liquidated within a short time-frame.

The organisation also warned that it would have severe impact on stocks and rupee.

Taking strong objection to these claims, Securities and Exchange Board of India (Sebi) said in a rare early morning statement, "It is preposterous and highly irresponsible to claim that 75 billion dollars of FPI investment will move out of the country because of Sebi's circular issued in April 2018."

The market regulator, in April, had asked Category II and III FPIs to provide a list of their beneficial owner (BO) in a prescribed format within six months.

It had, however, last month extended the deadline by two months till December for providing a list of beneficial owners, and assured them that issues raised will be looked into by an expert panel.

The decision came after Sebi received representations from market participants, seeking review and additional time for complying with the guidelines.